Builder sentiment rose one point to 38 in March; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to NAHB. It reached a record high of 90 in November 2020.
“Affordability for buyers and builders remains a top concern,” said NAHB Chairman Bill Owens. “Many buyers remain on the fence waiting for lower interest rates and due to economic uncertainty. Builders are facing elevated land, labor and construction costs and nearly two-thirds continue to offer sales incentives in a bid to firm up the market.”
Regarding the three components of the homebuilder index, current sales conditions rose one point to 42; sales expectations climbed two points to 49; and buyer traffic increased three points to 25.
Thirty-seven percent of builders reported cutting prices in March compared with 36% in February, 40% in January, and 40% in December 2025. The average price discount was 6%, which is unchanged from February. Sixty-four percent of builders were using sales incentives other than price cuts to improve sales in March, which is down slightly from 65% in February; this marks the 12th consecutive month the use of sales incentives has exceeded 60%.
